Writer: Emmanuel Njuki. PHOTO/FILE
In a country where small and medium-sized enterprises (SMEs) account for 90% of the business sector and contribute approximately 20% of the Gross Domestic Product (GDP), it is clear that these enterprises are the bedrock of Uganda's economy. These businesses play a pivotal role in job creation, economic growth, and community development. They employ over 2.5 million people, driving innovation and economic activity across the nation. Yet, despite their significant contribution, SMEs in Uganda often struggle with challenges that impede their growth—limited access to capital, inadequate infrastructure, and skills training among other challenges.
To address these hurdles and unlock the full potential of Uganda's SMEs, they require the right tools and support. One such essential component is targeted training and development. Through the Growing Retailers Innovatively Together (GRIT) program by Nile Breweries designed to uplift and transform the retail SME sector. Over 1,560 SME retailers across Uganda have been trained, gaining skills in areas such as financial management, marketing, digital skills, and responsible retailing.
GRIT is designed to address the multifaceted challenges faced by retail SMEs by focusing on three key pillars: growth, education, and inclusion. It is no secret that many SME owners in Uganda lack formal training in business management. This knowledge gap has often led to inefficiencies and businesses closing before the 5-year mark. GRIT addresses this by offering tailored training in financial and stock management, marketing and sales, and responsible retailing. Moreover, the programme’s ongoing coaching and mentoring component ensures that entrepreneurs continue to grow and develop, thereby creating a sustainable impact on their businesses and the communities they serve.
The majority of the SMEs operate informally and are excluded from the formal financial system. This training equips these businesses with the necessary tools to transition into the formal economy, thereby enhancing their access to financial services such as capital and loans, which significantly boosts their growth potential.
However, the challenges facing Uganda’s SMEs go beyond a lack of training. According to research, 65% of all alcohol consumed in Uganda is illicit, much of it harmful. GRIT’s focus on responsible retailing is therefore crucial, as it aims to reduce the availability of cheap, illicit, and harmful alcohol, thereby protecting consumers and ensuring that SMEs are engaged in ethical business practices.
Increased investment in SME education and development is not just about boosting individual businesses; it is about driving economic growth at a national level. When SMEs thrive, they create jobs, generate income, and stimulate economic activity in their communities. They are the lifeblood of the economy, and their success is intrinsically linked to the future prosperity of Uganda.
It is time for all stakeholders to recognize the pivotal role these businesses play in our economy and to invest in their growth and development.
Emmanuel Njuki is the head of legal and corporate affairs at Nile Breweries Ltd.
